According to him, external causes, not the exchange itself, are mostly to blame for Binance’s FUD.
The primary concerns
On December 23, Binance CEO Changpeng “CZ” Zhao posted on Twitter to discuss the causes of the current fear, uncertainty, and doubt (FUD) surrounding the cryptocurrency exchange. CZ claims in the forum that external forces are mostly to blame for Binance’s FUD rather than the exchange itself.
Why do people FUD about @Binance?
A few (non-exhaustive) reasons. Thread 1/98
— CZ 🔶 Binance (@cz_binance) December 23, 2022
The CEO cited that certain members of the bitcoin community despise centralization as one of the causes. They despise CEX; he said, regardless of whether it accelerates the acceptance of cryptocurrencies. CZ also noted that several industry participants had viewed Binance as a competitor, with rising lobbying efforts. The Block’s CEO, Mike McCaffrey, secretly used loans from Alameda Research to fund the crypto news platform and was criticized for loaning sums of money to small media that are worth many times the media outlet’s market value, including buying their Ceo’s mansions.
3/ Some industry players view @Binance as competition. We have seen some go to extraordinary lengths to lobby against us, or loaning sums of money to small media that’s worth many times the media outlet’s market value, including buying their CEOs houses, etc.
— CZ 🔶 Binance (@cz_binance) December 23, 2022
What will Binance do next?
After reporting two loans totaling $27 million from the FTX Group hedge fund, McCaffrey resigned as CEO on December 9. Without offering any proof, CZ constantly referenced media outlets’ coverage as the source of FUD and claimed that some had been “paid” to manufacture it. The executive also pointed out that right-wing politicians propagate false information while attempting to save established financial institutions from disruption by cryptocurrencies.
Finally, CZ asserted that the spread of FUD against the exchange might be aided by a small percentage of envious people or just plain biased against Chinese-looking Canadians. Since the demise of FTX, investors have started shifting their crypto assets to self-custody and other exchanges in reaction to the FUD surrounding Binance. There have been billions of outflows in recent weeks due to various worries about the exchange’s liquidity, reserves, and continuing investigations in the United States. Binance also released a blog post (1) in Chinese on December 22 that addressed seven important points the business wants to explain.
